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5 Top Growth Stocks to Buy as Recession Fears Subside
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The U.S. economy showed robustness in 2023 while expanding at a healthy pace in the final three months and squashing recession fearmongering. The domestic economy displayed astounding resilience in the face of the Federal Reserve’s monetary tightening campaign to tame relentless price pressures. It continued to thrive, banking on the uptick in consumer outlays and strength in the labor market.
The U.S. economy accelerated at an annualized rate of 3.3% in the final quarter of 2023, more than economists’ forecast of growth of 2%, according to the Commerce Department. In the third quarter, the economy grew at an annualized pace of 4.9%. Thus, the economy registered back-to-back strong readings despite higher interest rates and elevated inflation.
The U.S. economy, in reality, expanded by 2.5% for the whole of 2023, and became the fastest-growing advanced economy last year. This was also better than the 1.9% growth in 2022. The gross domestic product, nonetheless, improved in the fourth quarter due to steady consumer outlays, which rose 2.8%. Notably, consumer spending accounts for almost two-thirds of economic activity. Business investments and government outlays also increased in the reported quarter.
Most importantly, the personal consumption expenditures (PCE) price index that the Fed prefers as a long-term inflation measure, increased by 1.7% in the fourth quarter, less than the third quarter’s reading of 2.6%, and very much around the central bank’s 2% goal. What’s more, in the fourth quarter, the core PCE advanced at an annual rate of 2%. Needless to say, the decline in prices of indispensable goods and services gave the wherewithal to consumers to spend and boost economic growth.
But it’s not just in 2023, the economy is expected to trounce recession worries this year, too, and chug along. After all, economic activity is already off to a solid start, with the S&P flash U.S. services and manufacturing PMI climbing in January from the prior month.
Amphastar Pharmaceuticals is a specialty pharmaceutical company. Amphastar Pharmaceuticals currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.3% over the past 60 days. AMPH’s expected earnings growth rate for the current year is 62.9%.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel. Abercrombie & Fitch currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 14.8% over the past 60 days. ANF’s expected earnings growth rate for the current year is 2,320%.
Cameco is one of the world's largest uranium producers. Cameco currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 12.5% over the past 60 days. CCJ’s expected earnings growth rate for the current year is 188%.
CyberArk Software provides information technology security solutions. CyberArk Software currently has a Zacks Rank #2 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 2.6% over the past 60 days. CYBR’s expected earnings growth rate for the current year is 277.3%.
LendingTree operates an online consumer platform in the United States. LendingTree currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. TREE’s expected earnings growth rate for the current year is 100%.
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5 Top Growth Stocks to Buy as Recession Fears Subside
The U.S. economy showed robustness in 2023 while expanding at a healthy pace in the final three months and squashing recession fearmongering. The domestic economy displayed astounding resilience in the face of the Federal Reserve’s monetary tightening campaign to tame relentless price pressures. It continued to thrive, banking on the uptick in consumer outlays and strength in the labor market.
The U.S. economy accelerated at an annualized rate of 3.3% in the final quarter of 2023, more than economists’ forecast of growth of 2%, according to the Commerce Department. In the third quarter, the economy grew at an annualized pace of 4.9%. Thus, the economy registered back-to-back strong readings despite higher interest rates and elevated inflation.
The U.S. economy, in reality, expanded by 2.5% for the whole of 2023, and became the fastest-growing advanced economy last year. This was also better than the 1.9% growth in 2022. The gross domestic product, nonetheless, improved in the fourth quarter due to steady consumer outlays, which rose 2.8%. Notably, consumer spending accounts for almost two-thirds of economic activity. Business investments and government outlays also increased in the reported quarter.
Most importantly, the personal consumption expenditures (PCE) price index that the Fed prefers as a long-term inflation measure, increased by 1.7% in the fourth quarter, less than the third quarter’s reading of 2.6%, and very much around the central bank’s 2% goal. What’s more, in the fourth quarter, the core PCE advanced at an annual rate of 2%. Needless to say, the decline in prices of indispensable goods and services gave the wherewithal to consumers to spend and boost economic growth.
But it’s not just in 2023, the economy is expected to trounce recession worries this year, too, and chug along. After all, economic activity is already off to a solid start, with the S&P flash U.S. services and manufacturing PMI climbing in January from the prior month.
Hence, with recession fears subsiding, and the economy continuing to bloom, the stock market is widely expected to experience a bull market, which calls for investing in growth stocks such as Amphastar Pharmaceuticals (AMPH - Free Report) , Abercrombie & Fitch (ANF - Free Report) , Cameco (CCJ - Free Report) , CyberArk Software (CYBR - Free Report) and LendingTree (TREE - Free Report) (read more: 3 S&P 500 Growth Stocks to Buy as Index Enjoys Bull Market).
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Amphastar Pharmaceuticals is a specialty pharmaceutical company. Amphastar Pharmaceuticals currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.3% over the past 60 days. AMPH’s expected earnings growth rate for the current year is 62.9%.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel. Abercrombie & Fitch currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 14.8% over the past 60 days. ANF’s expected earnings growth rate for the current year is 2,320%.
Cameco is one of the world's largest uranium producers. Cameco currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 12.5% over the past 60 days. CCJ’s expected earnings growth rate for the current year is 188%.
CyberArk Software provides information technology security solutions. CyberArk Software currently has a Zacks Rank #2 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 2.6% over the past 60 days. CYBR’s expected earnings growth rate for the current year is 277.3%.
LendingTree operates an online consumer platform in the United States. LendingTree currently has a Zacks Rank #1 and a Growth Score of B. The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. TREE’s expected earnings growth rate for the current year is 100%.